Allient (ALNT) Q1 2025 Earnings Call May 08, 2025 10:00 AM ET Speaker0 Please note that this event is being recorded. I would now like to turn the conference over to Craig Mihalik, Investor Relations. Please go ahead. Speaker1 Thank you and good morning everyone. We certainly appreciate your time today as well as your interest in Alliant. Joining me today are Dick Rizala, our Chairman, President and CEO and Jim Michaud, our Chief Financial Officer. Dick and Jim will walk you through our first quarter twenty ...

First Quarter 2025 Financial Results Call Nasdaq: ALNT May 8, 2025 This presentation will discuss some non-GAAP financial measures, which the Company believes are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. The Company has provided reconciliations of comparable GAAP to non-GAAP measures in tables found in the Supplemental Information portion of this presentation. | ...

Allient (ALNT) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 39.39%. A quarter ago, it was expected that this motion control product maker would post earnings of $0.26 per share when it actually produced earnings of $0.31, delivering a surprise of 19.23%.Over the last four quarters, ...

Allient (ALNT) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changing earn ...

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $122 million, a decrease from the same period last year, with a gross margin of 31.5%, showing a sequential improvement despite soft volume [9][19][27] - For the full year, revenue totaled $530 million, reflecting anticipated demand softness due to inventory rebalancing and customer utilization of excess inventory [10][19] - Operating cash flow for the year was nearly $42 million, with total debt reaching approximately $240 million following the acquisition of SNC [10][39] Business Line Data and Key Metrics Changes - Aerospace and defense sales increased by 20% in Q4 due to specific defense and space program timing, while medical market revenue rose by 5% driven by demand for surgical instruments [20][21] - Vehicle market sales decreased by 46%, primarily due to reduced demand for powersports, and industrial market sales declined by 11% despite strong performance in power quality [21][22] - The industrial sector remained the largest market, contributing 47% of trailing twelve-month sales, driven by strong demand in power quality and semiconductor equipment [24] Market Data and Key Metrics Changes - The geographic sales mix shifted, with US customers accounting for 54% of total sales, down from 59% in the previous year [19] - The company noted challenges in Europe, particularly in Germany, with expectations of continued softness into midyear [58] - The data center expansion is expected to provide strong tailwinds, with significant growth anticipated in this area [60][68] Company Strategy and Development Direction - The company is focused on operational efficiencies and long-term growth, with initiatives like "Simplify to Accelerate Now" expected to deliver $6 to $7 million in annual savings in 2025 [12][14] - The Dothan facility's expansion aims to enhance machining capabilities, aligning with key market needs [15][16] - The company is actively pursuing opportunities in the defense sector through its newly formed Allient Defense Solutions unit [46] Management's Comments on Operating Environment and Future Outlook - Management anticipates a moderated pace of orders across most markets through the first half of 2025, with expectations for greater stability in order flow as customer inventory adjustments near completion [48] - The company remains optimistic about long-term operational improvements despite near-term inefficiencies during transitions [49][50] - Management emphasized the importance of aligning operations with customer needs to enhance responsiveness and drive growth [62] Other Important Information - The company reported a net income of $3 million for Q4, translating to earnings per diluted share of $0.18, with adjusted net income of $5.2 million or $0.31 per diluted share [32] - Total debt at year-end was $224 million, with a commitment to deleverage following the SNC acquisition [39][41] - The company entered into a new three-year interest rate swap to hedge $50 million of debt, providing stability amidst rate fluctuations [40] Q&A Session Summary Question: Insights on geographical and end-market performance - Management noted that North America is strengthening, with expectations for the industrial sector to return to normal growth rates, while Europe remains soft [57][58] Question: Potential for growth in Europe - Management indicated a "wait and see" approach regarding Europe, with ongoing operational efficiencies and new product development being key focus areas [64][65] Question: Data center market exposure and growth expectations - Management highlighted unique high-power solutions that provide a competitive edge, with significant growth in the data center market expected to continue [68][69] Question: Stability in medical and powersports businesses - Management acknowledged stabilization in the medical business around $20 million, with growth opportunities in higher-end applications, while powersports face challenges due to market dynamics [75][84] Question: Inventory normalization and cadence of improvement - Management confirmed that inventory levels are expected to normalize later in the year, with gradual improvements anticipated [102][104] Question: Dothan restructuring costs and financial reporting - Management stated that restructuring costs will not be broken out individually but will be included in the financials under business development [106][112] Question: Interest rate for the new swap - Management confirmed the interest rate for the swap is approximately 3.2% [115]

Allient Inc. (NASDAQ:ALNT) Q4 2024 Earnings Conference Call March 6, 2025 10:00 AM ET Company Participants Craig Mychajluk - IR Dick Warzala - Chairman, President and CEO Jim Michaud - CFO Conference Call Participants Greg Palm - Craig Hallum Capital Group Ted Jackson - Northland Securities Operator Good day, and welcome to the Allient Inc. Fourth Quarter Fiscal Year 2024 Financial Results Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist b ...

Allient (ALNT) came out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 19.23%. A quarter ago, it was expected that this motion control product maker would post earnings of $0.21 per share when it actually produced earnings of $0.31, delivering a surprise of 47.62%.Over the last four quarters, ...

Revenue and Income - Revenue for 2024 was $529,968, a decrease of 8.4% from $578,634 in 2023, with the Industrial and Vehicle markets experiencing declines[143]. - Net income for 2024 was $13,166, or $0.79 per diluted share, a 45% decrease compared to $24,097, or $1.48 per diluted share in 2023[143]. - Revenues for 2024 decreased to $529,968, down 8% from $578,634 in 2023, primarily due to a volume decrease of 8% and elevated inventory levels[173]. - Adjusted net income for 2024 was $24,679, down from $37,458 in 2023, with adjusted diluted earnings per share decreasing to $1.49 from $2.30[183]. - The company reported a comprehensive income of $158,000 for 2024, a significant drop from $25,885,000 in 2023[226]. - Operating income fell by 29% to $30,038 in 2024, compared to $42,314 in 2023[173]. - The income before income taxes for the year ended December 31, 2024, was $16,858,000, a decrease from $29,700,000 in 2023[324]. Bookings and Backlog - Bookings fell to $480,031 in 2024, an 8% decrease from $520,275 in 2023, with backlog decreasing by 17% to $230,788[143]. - Bookings for 2024 were $480,031, an 8% decrease from $520,275 in 2023, with backlog also declining by 16% to $230,788[173]. - The company's backlog as of December 31, 2024, was $230,788, with an expectation to recognize 85% of these performance obligations within the next twelve months[288]. Expenses and Costs - Gross profit decreased by 10% to $165,691 in 2024, resulting in a gross margin of 31.3%, down from 31.7% in 2023[143]. - General and administrative expenses decreased by 5% to $55,669 in 2024, reflecting cost reduction actions[177]. - Cash paid for interest in 2024 was $12,059 thousand, a slight decrease from $12,200 thousand in 2023, while income taxes paid decreased to $7,804 thousand from $12,687 thousand[255]. - The total operating lease expense for 2024 was $8,171,000, compared to $8,769,000 in 2023, reflecting a decrease of approximately 6.8%[337]. Dividends - The company declared dividends of $0.12 per share in 2024, with a payout ratio of 15% compared to 8% in 2023[144]. - The company declared dividends of $0.12 per share in 2024, up from $0.115 per share in 2023[202]. - For the years ended December 31, 2024, 2023, and 2022, total dividends paid were $1,981,000, $1,826,000, and $1,536,000, respectively, with per share dividends of $0.12, $0.115, and $0.10[305]. Assets and Liabilities - As of December 31, 2024, the company recorded $111,517 in inventory, representing approximately 19% of total assets[165]. - Goodwill recorded on the balance sheet as of December 31, 2024, was $131,789, representing about 23% of total assets[168]. - Total current assets decreased to $237,580,000 in 2024 from $248,151,000 in 2023, primarily due to a reduction in trade receivables and inventories[225]. - Total liabilities decreased to $310,927,000 in 2024 from $345,967,000 in 2023, with a significant reduction in current liabilities[225]. - The company’s long-term debt increased to $224,177,000 in 2024 from $218,402,000 in 2023, indicating a slight rise in leverage[225]. Cash Flow - Net cash provided by operating activities decreased by $3,188 to $41,850 in 2024 from $45,038 in 2023[193]. - Cash used in investing activities increased by $12,307 to $(34,914) in 2024, primarily due to a $20,000 cash payment for the acquisition of SNC[195]. - Cash used in financing activities decreased by $20,474 to $(843) in 2024, reflecting $20,000 borrowed from the Amended Revolving Facility for the SNC acquisition[196]. - Cash and cash equivalents increased to $36,102,000 in 2024 from $31,901,000 in 2023, indicating improved liquidity[225]. Acquisitions - The company acquired SNC Manufacturing Co. for a purchase price of $20,000 thousand, with SNC contributing $38,045 thousand in revenue and $3,066 thousand in net income during 2024[271][272]. - The company acquired 100% of Sierramotion Inc. for a total purchase price of $8,400, which includes $2,000 of contingent consideration[277]. - The company incurred $313 thousand in transaction costs related to the acquisition of SNC, which are included in business development expenses[271]. Financial Instruments and Risk Management - The Company holds notional amounts of $90,000,000 in interest rate derivatives as of December 31, 2024, to manage exposure to interest rate movements[319]. - The Company had foreign currency contracts with notional amounts of $30,945,000 and $22,193,000 at December 31, 2024, and 2023, respectively, resulting in losses of $1,749,000 and $281,000 for the years ended December 31, 2024, and 2023[318]. Taxation - The effective tax rate increased to 21.9% in 2024 from 18.9% in 2023, influenced by various tax provisions and credits[181]. - The total income tax provision for 2024 was $3,692,000, compared to $5,603,000 in 2023, reflecting a provision rate of 21.9%[324]. - Noncurrent deferred tax assets increased to $22,951,000 in 2024 from $20,877,000 in 2023, primarily due to research and development costs[325]. Future Outlook - The company plans to expand machining capabilities at its Dothan, Alabama facility, expected to yield initial benefits by the end of 2025[154]. - The company plans to focus on new product development and market expansion strategies to drive future growth[226]. - The company expects capital expenditures in 2025 to be approximately $10,000 to $12,000[195].

Core Viewpoint - Northland Capital Markets analyst upgraded Allient Inc. from Market Perform to Outperform, raising the price forecast from $30 to $35, citing improvements in the industrial market and expectations of reduced negative impacts from a weaker vehicle market as FY25 progresses [1] Company Performance - The analyst projects a 14.9% year-over-year sales decline in Q4 to $120 million, closely aligning with the consensus estimate of $119.7 million, attributing challenges to a weaker macro environment and reduced demand from major customers [2] - For FY25, sales are estimated to decline slightly from $527.9 million in FY24 to $518.2 million, while adjusted EBITDA is projected to grow by 16.6% to $68.9 million [3] - There are concerns regarding the FY25 consensus sales estimate being slightly too high, particularly for the second half, with a consensus of $268.0 million compared to the analyst's estimate of $262.4 million [3] Market Reaction - Following the analyst's upgrade, ALNT shares increased by 7% to $26.30 [3]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Allient (ALNT) Stock Analysis - Allient (ALNT) has shown a price increase of 28.9% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, ALNT's stock has gained 40%, with a beta of 1.61, suggesting it moves 61% more than the market [5] - ALNT has a Momentum Score of B, indicating a favorable time to invest based on its momentum [6] - The stock has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - ALNT is trading at a Price-to-Sales ratio of 0.81, suggesting it is undervalued at 81 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides ALNT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]